100% Earned Income Disregard Overview

To incentivize work and help clients gain economic mobility before leaving TAFDC, some clients are eligible to receive a 100% Earned Income Disregard as long as the total household countable income does not exceed 200% of the Federal Poverty Level (FPL) for up to 12 cyclical payments.

Disregarding 100% of a client’s earned income up to 200% of the FPL, allows families to use the supportive services offered with TAFDC while they increase their income and assets and build their employment history. It is critical for you to explain to both exempt and non-exempt clients the opportunity that the 100% Earned Income Disregard provides at the time of application and when a client reports new employment. The role of a case manager is to encourage clients to use this 100% Earned Income Disregard to obtain more hours or more lucrative employment.

The 100% Earned Income Disregard does not apply at application. It is an incentive program for families who are already receiving TAFDC to begin working or for families who apply for TAFDC with very low income to increase their earnings while taking advantage of the supportive services offered with TAFDC.

When a client has been determined eligible for TAFDC, and is subsequently eligible for the 100% Earned Income Disregard, the household’s income cannot exceed 200% of the (FPL). Each individual member of a household is eligible for his or her own 100% Earned Income Disregard Period. A counter will act as a tool to track a client’s usage of the 100% Earned Income Disregard. It is imperative that you follow the steps outlined in Entering, Changing & Ending Earned Income to correctly establish each client’s counter.

Household’s that have exhausted their 100% Earned Income Disregard will automatically be recalculated using the $200 Work-Related Expense and the 50% Earned Income Disregard.